Unformatted text preview: married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? Scot and Vidia will owe $56,981 in federal income tax this year computed as follows: $56,981 = $46,833.50 + 33%($240,000 - $209,250). Scot and Vidia’s average tax rate is 23.74 percent. Average Tax Rate = = = 23.74% Scot and Vidia’s effective tax rate is 23.26 percent. Effective tax rate = = = 23.26% Scot and Vidia are currently in the 33 percent tax rate bracket. Their marginal tax rate on increases in income up to $133,650 and deductions up to $30,750 is 33 percent....
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- Spring '10
- Progressive Tax, Taxation in the United States